I don't know this machine in particular, but new Singers have a pretty bad reputation. For an inexpensive sewing machine, Sears Kenmore machines have a much better reputation. Babylock and Brother also have better reputations than Singer.
The old vintage Singers are great machines, but most of the newer Singers are not.
You can find reviews of machines at
http://www.patternreview.com . That's a good place to check on a specific model before making a purchase.
Also, for applique, whatever machine you get you want to make sure you have infinitely variable stitch width and stitch length. In other words, don't get a machine that has a fixed stitch selection only; you want to be able to change the stitch length and stitch width.